AU Morning Wrap: ASX Rises; IDP Plunges More Than 11%
G'day, mooers! Check out the latest news on today's stock market!
• Nasdaq, S&P set records
• ASX rises; IDP plunges more than 11%
• Stocks to watch: IDP Education, SkyCity, Magellan Financial
Wall Street Summary
Most sectors gained as signs of weakening labor market fueled hopes that the US Federal Reserve could start cutting interest rates in the next few months. Advancers totaled 8,769 stocks, while decliners reached 4,596.
The tech-heavy $Nasdaq Composite Index (.IXIC.US)$ rose almost 2% to 17187.90 while the $S&P 500 Index (.SPX.US)$ closed 1.2% higher at 5454.03. The $Dow Jones Industrial Average (.DJI.US)$ gained 0.3% to 38807.33.
AU Market Watch
Australian shares rose by 0.6% at the open on Wednesday, buoyed by a surge in US tech stocks and the Bank of Canada's decision to cut its cash rate and signal plans for additional cuts. The central bank reduced its cash rate by 25 basis points to 4.75%, citing confidence in its ability to achieve its inflation target of 2%.
The AI mania that has swept Wall Street spilled over to the ASX, as the local tech sector gained 1.7%, with $WiseTech Global Ltd (WTC.AU)$, $Xero Ltd (XRO.AU)$, and $Pro Medicus Ltd (PME.AU)$ all rising by more than 1.8%.
ASX 200 futures are currently trading at 7,830.5, up 5 points, indicating a 0.06% increase.
Commodity
Spot gold climbed by 1.2% to $US2354.00/oz at 3.57pm in New York
Brent crude increased by 1.2% to $US78.44 a barrel
Iron ore decline by 0.3% to $US107.10 a tonne.
Crypto
As of latest data, $Bitcoin (BTC.CC)$ is priced at $71,170, up by 0.94% in the past 24 hours, while $Ethereum (ETH.CC)$ is priced at $3,863, up by 1.31% in the past 24 hours.
Stocks to Watch
$IDP Education Ltd (IEL.AU)$'s shares fell by 10.6% to $14.02 on Wednesday, after the company warned of a significant reduction in business due to restrictive policies in Australia and other countries affecting international students.
Auckland casino operator $SkyCity Entertainment Group Ltd (SKC.AU)$ trimmed its profit guidance for financial year 2024, citing the weak economy in New Zealand and a delay in launching a new hotel project. The company now expects a net profit between NZ$120 million and NZ$125 million, compared to prior guidance of NZ$125 million to NZ$135 million. As a result, the company's stock plunged by 18.4% to $1.31.
Funds management group $Magellan Financial Group Ltd (MFG.AU)$ reported net fund outflows of $0.1 billion in April, driven by $0.2 billion in retail outflows. However, its institutional business recorded net inflows of $0.1 billion, reversing the trend of outflows. As of May 31, the company had total funds under management of $36.7 billion, compared to $36.3 billion at the end of April.
Economic Calendar (AEST)
11:30 am: Australia Balance of Trade (Apr)
10:15 pm: ECB Interest Rate Decision
10:45 pm: ECB Press Conference
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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